Tax Loss Selling, Window Dressing & The January Effect in 2023
modernvalueinvesting.substack.com
Extreme Return Dispersion in 2022 2022 has been a very bad year for the stock market. The S&P 500 is down -20%, the Nasdaq is down even -34%. Almost three years after the outbreak of Covid-19, the Nasdaq now trades merely 5% above its pre-Covid high - as if the acceleration of digitalization, three years of compounding, and some 16% cumulative nominal price inflation based on the CPI never happened. On the other hand, the Dow Jones is only down 3.5% as old school stocks like Coca Cola and Mc Donalds still trade at PE ratios above 25. Instead of fancy break-through technologies, oil and gas stocks are the 2022 darlings of the global investment community.
Tax Loss Selling, Window Dressing & The January Effect in 2023
Tax Loss Selling, Window Dressing & The…
Tax Loss Selling, Window Dressing & The January Effect in 2023
Extreme Return Dispersion in 2022 2022 has been a very bad year for the stock market. The S&P 500 is down -20%, the Nasdaq is down even -34%. Almost three years after the outbreak of Covid-19, the Nasdaq now trades merely 5% above its pre-Covid high - as if the acceleration of digitalization, three years of compounding, and some 16% cumulative nominal price inflation based on the CPI never happened. On the other hand, the Dow Jones is only down 3.5% as old school stocks like Coca Cola and Mc Donalds still trade at PE ratios above 25. Instead of fancy break-through technologies, oil and gas stocks are the 2022 darlings of the global investment community.